Insights & Resources

With the upcoming Federal Election on September 20, 2021, Canadians will be heading back to the polls, to cast their votes for candidates who bring promises of change and prosperity for Canadians. Each major political party has brought some big proposals to the table, with several changes that can have an impact on the economy, financial markets, and your investment portfolio.

We took some time to review the Canada’s Political Party Platforms as it relates to these issues. While these points below are not the only items in each Party’s Platform, we feel that these could affect the current tax landscape when building your investment solutions, estate plan, or even any financial plans for your business. It is important as always to stay informed and up to date on each party’s platform in order to make the right decision for you.

Liberal Party of Canada

• Luxury tax on cars and private aircrafts over $100,000 & boats over $250,000
• Update Disability Tax Credit rules – ultimately increasing the number eligibleStricter enforcement of tax avoidance schemes
• EI benefit for self- employed Canadians (BNN)
• Create minimum tax rate such that those who qualify for the top bracket pays at least 15% each year

Conservative Party of Canada

• One month break from 5% Federal GST on in store retail purchases
• Revisit a single income tax filing requirement for Quebec
• Introduce flow- through shares in the small tech start up space (tax filing incentives, previously used in the mining industry).
• Increase the Disbursement quota for charitable donations to 7.5%

New Democratic Party (NDP)

• Implement a 20% Foreign Buyer’s tax on the sale of homes to individuals who aren’t Canadian Citizens or permanent residents
• Stricter enforcement of tax avoidance schemes
• Increase capital gains inclusion rate to 75% (currently 50%)
• Increase top marginal tax by 2% (from 33% to 35%) for those earning over $210,000
• Implement Luxury goods tax
• Wealth tax to individuals with wealth > $10M

Green Party of Canada

• Implement a financial transactions tax of 0.5%
• Raise Corporate tax rate from 15% to 21%
• Eliminate 50% Corporate meals and entertainment deduction
• Implement Luxury goods tax
• Close capital gains loopholes (details not specific)
• Wealth tax to individuals with > $20M

Bloc Québécois

• Introduce a new tax on real estate speculation
• Increase of the indexable old age pension of $110 per month for all people over 65
• Create a new wealth tax
• Introduce a unique tax filing system managed by the province of Quebec

As with every election, as part of our process at Ferguson Financial Planning, we always consider how an election, and its results, can impact our clients’ wealth and financial goals. This time will be no different. We would be pleased to speak with you about your current financial plan and goals, and discuss a strategy to be prepared both now and in the future. Please contact us or book an appointment.